QUESTION 18 Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the sam house. The house price grows 4.5% annually (compounded annually). Lucy will sell the house in one year. What is Lucy's annualized IRR?
QUESTION 18 Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the sam house. The house price grows 4.5% annually (compounded annually). Lucy will sell the house in one year. What is Lucy's annualized IRR?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 18PROB
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